Bitcoin rises after Bank of Japan hikes rates to 1%, a 31-year high

The Bank of Japan raised rates to 1%, the highest since 1995. Bitcoin rose from $65,600 to $66,000 as markets focused on the BOJ's dovish decision to pause its bond taper, capping long-term yields.

• BOJ raised its policy rate by 25 basis points to 1%, the highest level since 1995, in line with expectations.
• Bitcoin climbed from $65,600 to $66,000 after the decision, while the yen weakened slightly to 130.35 per USD.
• The positive crypto reaction came from a dovish element: the BOJ paused its bond taper, fixing monthly JGB purchases at ~2 trillion yen.
• The BOJ highlighted upside risks to inflation, with wholesale prices climbing more than 6% year-over-year in May.
• Rate hikes are typically bearish for risk assets, but the bond taper pause helped soothe markets.

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